Agency

In South Carolina, what is 'estoppel by representation' in agency?

AWhen SCREC estops a licensee from representing clients
BWhen a principal makes representations that lead a third party to believe an agent has authority, preventing the principal from denying that authority✓ Correct
CWhen an agent's misrepresentation estops the principal from correcting it
DA type of agency created by court order

Explanation

Estoppel by representation occurs when a principal's words or actions lead a third party to reasonably believe an agent has authority. If the third party relies on this belief, the principal may be estopped (prevented) from denying the agent's authority.

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